Question

How can investors receive compounding returns?
A) By investing their earnings back into their original investment
B) By diversifying their investment portfolio
C) By selecting a savings account that has a higher interest rate
D) By transferring their earnings back into high-risk investment

Answer 1

Option A is correct.

Investors can compound their returns by putting their earnings back into their original investment. Compounding is an investment technique by which, interest is earned on interest already earned. In simple terms, interest earned is not withdrawn or used up, but it is left with the original investment to earn further interest, thereby becoming part of the principal amount.

Answer 2

option a is correct bit.....